Help Obtained From Bankruptcy Courts In Dealing With Financial Crisis Efficiently
Bankruptcy is one of the various legal options available to individuals and organizations under severe debt burdens. However, despite the help it can provide to people in debt crises, there are several pessimisms associated with it. Let us discuss some of the myths regarding bankruptcy that need to be verified in order to understand whether bankruptcy is suitable in your financial circumstances:
Bankruptcy Ruins your Credit Records: Though it is true that with bankruptcy, all your credit cards and bank accounts are seized by the bankruptcy court, it is better to view it as an excellent opportunity to start your financial records in a fresh manner. Getting a chance to build a fresh financial record can be extremely beneficial for someone struggling with severe debt crises.
Bankruptcy Seizes all your Assets: Though it is true that some forms of bankruptcy like chapter 7 bankruptcy, seizes your non-exempt assets, several provisions in the law enable individuals to retain most of their valuable properties such as jewelry, furniture, clothing, insurances, pension funds, tools, household items, inexpensive vehicles and sometimes even your home. Choosing the right type of bankruptcy not only allows you to hold back your assets, but also provides excellent protection against foreclosure. Bankruptcy can efficiently help in saving your secured property from getting foreclosed.
You Can File for Bankruptcy Only Once: There is no bankruptcy law that prohibits people from opting for it more than once. You are permitted by the bankruptcy court to opt for it more than once if your financial situation requires. However, in most cases, you have to wait for a certain period of time and follow certain fixed rules before you can make another filing. For example, in chapter 7 bankruptcy, you are required to wait for a period of 8 years before you can file for it again.
Scarborough County Court can actually help you with successful discharge of your debts. However, there are certain rules that you have to follow for a successful filing:
Despite the fact that there are no compulsions to hire a bankruptcy attorney for submitting petitions in the court, and you are allowed to do that by yourself, it is nevertheless advisable to get help from an experienced and knowledgeable attorney who can efficiently help you know the various legal complexities involved in bankruptcy. It is always wise to have an expert to help you during the proceedings.
Bankruptcy Ruins your Credit Records: Though it is true that with bankruptcy, all your credit cards and bank accounts are seized by the bankruptcy court, it is better to view it as an excellent opportunity to start your financial records in a fresh manner. Getting a chance to build a fresh financial record can be extremely beneficial for someone struggling with severe debt crises.
Bankruptcy Seizes all your Assets: Though it is true that some forms of bankruptcy like chapter 7 bankruptcy, seizes your non-exempt assets, several provisions in the law enable individuals to retain most of their valuable properties such as jewelry, furniture, clothing, insurances, pension funds, tools, household items, inexpensive vehicles and sometimes even your home. Choosing the right type of bankruptcy not only allows you to hold back your assets, but also provides excellent protection against foreclosure. Bankruptcy can efficiently help in saving your secured property from getting foreclosed.
You Can File for Bankruptcy Only Once: There is no bankruptcy law that prohibits people from opting for it more than once. You are permitted by the bankruptcy court to opt for it more than once if your financial situation requires. However, in most cases, you have to wait for a certain period of time and follow certain fixed rules before you can make another filing. For example, in chapter 7 bankruptcy, you are required to wait for a period of 8 years before you can file for it again.
Scarborough County Court can actually help you with successful discharge of your debts. However, there are certain rules that you have to follow for a successful filing:
- It is compulsory to complete a credit counseling course. You must submit the certificate of completion during the time of filing. Failing to do so might result in your petition getting dismissed by the court.
- You must submit all documents proving your income and expenses during the six months period prior to bankruptcy filing. This is required by the court to evaluate your eligibility to file for bankruptcy.
- You are not allowed to file for chapter 7 bankruptcy again unless you were discharged from your previous debts under chapter 7 bankruptcy 8 years back.
- Similarly, you cannot file for chapter 13 bankruptcy unless you were discharged from your previous debts under chapter 7, 11 or 12 4 years back or under chapter 13 more than 2 years back.
Despite the fact that there are no compulsions to hire a bankruptcy attorney for submitting petitions in the court, and you are allowed to do that by yourself, it is nevertheless advisable to get help from an experienced and knowledgeable attorney who can efficiently help you know the various legal complexities involved in bankruptcy. It is always wise to have an expert to help you during the proceedings.
